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denisbider comments on Open Thread: February 2010 - Less Wrong
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If F(n) < n, then yes, karma disappears from the system when voting on comments, but is pumped back in when voting on articles.
It does appear that the choice of a suitable F(n) isn't quite obvious, and this is probably why F(n) = infinite is currently used.
Still, I think that a more restrictive choice would produce better results, and less frivolous voting.